Frontier Communications Urges Shareholders to Accept Verizon's $20 Billion Takeover

(Reuters) – Frontier Communications (OTC:FTRCQ) urged shareholders on Friday to vote for a $20 billion takeover bid from Verizon (NYSE:VZ), stating it had reviewed interest from other buyers and found Verizon's proposal to be the most favorable.

The fiber-optic internet provider indicated that Verizon's final offer represents "a superior value over all other potential paths, including Frontier's ambitious standalone plan."

Frontier did not disclose the names of other bidders.

Verizon agreed in September to acquire Frontier as it aims to expand its fiber subscriber base and better compete with rivals like AT&T (NYSE:T).

However, some Frontier investors are concerned, claiming Verizon's $38.50 per share offer is too low, according to a Reuters report.

Verizon CEO Hans Vestberg expressed confidence on Tuesday, stating the company has provided its "best and final" deal, which he believes is "good for all stakeholders."

Frontier claimed the offer is "highly attractive and creates significant value for stockholders … and a significant premium to all other measures of Frontier's historical stock performance.'"

Furthermore, the company noted: "There are no assurances that Verizon or any other bidder will return with another offer."

If the merger does not proceed from Frontier's side, it may face a termination fee of $320 million to Verizon. Conversely, if Verizon withdraws, it may owe Frontier $590 million, as stated in a filing on Friday.